CI closes lower for the 2nd day in a row
Cigna Corporation (CI) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, CI ended Thursday at 159.70 edging lower $0.48 (-0.3%), underperforming the S&P 500 (0.25%). Closing below Wednesday's low at 160.04, the stock confirmed its breakout through the prior session low after trading up to $2.91 below it intraday.
Daily Candlestick Chart (CI as at Aug 15, 2019):
Thursday's trading range has been $3.96 (2.46%), that's below the last trading month's daily average range of $4.87. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for CI.
After trading down to 157.13 earlier during the day, the share bounced off the key technical support level at 158.67 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Monday, CI gained 2.33% on the following trading day.
Cigna shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Cigna. Out of 414 times, CI closed higher 53.14% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 64.01% with an average market move of 1.23%.